Miffed Over MiFID II? ICE Moves Several Futures And Options Contracts From Europe To U.S.

One of the world’s largest financial and commodity market power brokers – the Intercontinental Exchange (ICE) – which runs 23 regulated exchanges and marketplaces, including the New York Stock Exchange, has seemingly made its displeasure at new and onerous European regulations clear by moving several of its offered energy contracts to North America.

Europe’s Markets in Financial Instruments Directive (MiFID II), which came into force on 3 January, imposes tight limits on trading positions to prevent any singular trader or entity from having a very large position, and by default a huge influence over the energy futures market, alongside various other rules.

Back in November 2017, barely months before MiFID II norms came into effect, leading global crude traders and oil majors persuaded European Union regulators to exclude them from the position limits rule.

They successfully argued that their dealings in oil futures and options are to hedge large physical positions rather than for speculative position building.

Of course, with no such exclusion for traders, ICE noted in a recent note to its customers that it will move trading in 245 futures and options contracts on North American oil and natural gas liquids to the U.S. from Europe.

The move effective 19 February, would see it moving the contracts from ICE Futures Europe to ICE Futures U.S. (IFUS).

The exchange operator said its move was designed to meet growing customer demand for the execution of contracts stateside, and that transitioning contracts will continue to be traded using the same platform.

“Open positions in the Transitioning Contracts will be treated as positions in the IFUS contracts from and after the Transition Date,” it added.